Tag Archives: real-estate
UK house prices back on track after September dip
UK house prices back on track after falling slightly in September dip with a 1.2% rise in October and up 7% annually, the latest published index shows. Growth of up to 5% is now predicted across UK in 2015 but the data from haart, the UK’s largest independent estate agent, with a network of over 200 branches, also shows that first time buyers are paying 8.1% more than a year ago. The latest rise takes the average annual house price to £204,247 but in London it is £501,561 with prices in the city up 18% year on year although monthly growth has slowed to 0.3%. The firm predicts UK property price growth between 3.5% and 5% in 2015 and in London up to 7% as 10 buyers chase each new property instruction across the country and 17 in London. ‘Although price growth is easing it is merely a market correction with all signals pointing to price rises of up to 5% across the UK next year. Savvy buyers and sellers would be wise to run with the window of opportunity that this creates now,’ said Paul Smith, chief executive officer of haart. He predicts that in the run up to the election next May it will be a case of ‘steady as she goes’ with little intervention from the government which thinks it has bigger fish to fry. However, he thinks this is short sighted. ‘Now is the time for some erudite analysis of the housing market by all political parties if we are to emerge post-election with renewed vigour. Supply of homes is the biggest issue affecting prices and until this is properly addressed, prices will continue to rise,’ he explained. The data also shows that the number of new buyers registering is down 12.3% annually and 2.4% on the month, but this must be seen in the context of the first six months of this year which were exceptionally busy with a renewed enthusiasm to buy driven by low interest rates and the availability of good mortgage deals. The number of properties for sale has dropped slightly annually, which again must be seen in context. The previous four months all saw an increase in the number of properties for sale. Overall demand remains strong across the UK. Again, with demand from first time buyers, there has been both an annual and a monthly fall in volumes by 17.2% and 3.6% respectively. First time buyers are putting down, on average, a deposit that is 4.4% lower than this time last year and the average LTV achieved is now 79.5% which is up from 78.7% last year. First time buyers are now taking out higher mortgages, at an average of £131,119, an 11.9% annual increase. Continue reading
Equity release from UK homes going on improvements, study finds
The main reason home owners in the UK are choosing to unlock money from their property is to fund home improvements, new research suggests. Equity release lending has reached £1 billion so far this year and the need to renovate is the reason almost half ,48%, of all LV= equity release customers have taken out a loan. However customers are more likely to be making essential modifications such as widening doorways for wheelchair access or installing a stair lift than adding a conservatory or loft extension. The research also shows that people are using equity release to relieve pressure on the purse strings. The figures for the year to date reveal that 15% of the firm’s equity release customers wanted to use the money to top up their retirement income, with a further 9% wanting to clear an outstanding mortgage and other existing debts and loans. Financial necessity has driven much of the demand for equity release. However, treating or helping out family also remains a common reason for choosing equity release, with 10% stating this as their motivation. Whilst using the freed up equity for a holiday accounted for 6% of applications. ‘Whilst home improvements continues to be the most popular reason for using equity release, market growth is also being driven by the need to meet and reduce financial commitments,’ said Vanessa Owen, head of annuities and equity release at LV=. ‘With the reality of living on a low pension income hitting home for many retirees, it makes sense that many wish to unlock the cash tied up in their properties. At retirement, someone’s largest asset is usually their house and for those retirees who wish to stay in the home that they love, then equity release is a solution worth considering,’ she explained. She pointed out that this year’s Budget announcement gives new retirees more flexibility as to how they take their pension, but they will still see their income drop when making the transition from working to retirement. ‘As a result we are likely to see demand for equity release grow as those with small pots look to fund their later years. It is essential that retirees consider all their options and that equity release is considered alongside other retirement income solutions so that they are able to effectively plan for the future,’ she added. Continue reading
Canadian property prices and sales both continue upwards, latest index shows
National home sales in Canada rose by 0.7% from September to October and prices were up 7.1% year on year, according to the latest data from the Canadian Real Estate Association. It is the sixth consecutive month of stronger resale housing activity compared to a quiet start to the year, and the strongest activity for the month of October since 2009. ‘Low interest rates continued to support sales in some of Canada’s more active and expensive urban housing markets and factored into the monthly increase for national sales,’ said CREA president Beth Crosbie. ‘Even so, sales did not increase in many local markets in Canada, which shows that national and local housing market trends can be very different,’ she added. According to Gregory Klump, CREA chief economist, while the strength of national sales activity is far from being a Canada-wide phenomenon, it extends beyond Vancouver, Calgary and Toronto. ‘Sales in a number of B.C. markets have started to recover from weaker demand over the past couple of years. They have also been improving across much of Alberta, where interprovincial migration and international immigration are reaching new heights,’ he explained. Actual (not seasonally adjusted) activity in October stood 7% above levels reported in the same month last year. October sales were up from year ago levels in about 70% of all local markets, led by Greater Vancouver and the Fraser Valley, Victoria, Calgary, and Greater Toronto. Combined sales in these five markets account for almost 40% of national sales activity, and nearly 60% of the year on year increase in national sales. Actual (not seasonally adjusted) sales activity for the year to date in October was 5.2% above levels in the first 10 months of 2013 and 2.5% above the 10 year average for the same period. The house price index increased by 5.51% year on year in October. Price gains have held steady between 5% and 5.5% since the beginning of the year. A breakdown of the data shows that year on year price growth accelerated for two storey single family homes, townhouse units and apartment units in October. By contrast, price momentum slowed further for one storey single family homes. Two storey single family homes continue to post the biggest year on year price gains at 6.94%, followed closely by townhouses at 5.83%, and one storey single family homes at 4.75%. Price growth for apartment units remains comparatively more modest at 3.51%. Price growth varied among housing markets tracked by the index. As in recent months, Calgary saw the biggest increase at 9.47%, Greater Toronto saw growth of 8.3% and Greater Vancouver was up 6.03%. Prices were up between 1% and 2.5% year on year in the Fraser Valley, Victoria, and Vancouver Island, flat in Saskatoon, Ottawa, Greater Montreal, and Greater Moncton, and down 3.4% in Regina. The actual (not seasonally adjusted) national average price for homes sold in October 2014 was $419,699, up 7.1% from the same month last year. The national average price continues to be pulled upward by sales… Continue reading
